Architecture Billings Index Rebounds

Washington, DC, August 23, 2006--A modest increase in the July Architecture Billings Index (ABI), a leading economic indicator of nonresidential construction activity, counters the previous two months that showed slightly negative scores. The uptick can be attributed to growth at commercial / industrial architecture firms. The latest figures continue the pattern that suggests a strong outlook in the commercial construction market well into 2007, based on the approximate six to nine month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the July ABI rating was 51.8 (any score above 50 indicates an increase in billings), just above the 49.2 mark in June. “For the last few months the index has been close to the break-even point on both the positive and negative side,” said AIA chief economist Kermit Baker, PhD, Hon. AIA. “We will continue to monitor for signs of a pending design slowdown, but for now these figures are in line with our long range outlook for a healthy nonresidential sector.” Key July ABI highlights: • Regional averages: West (52.7), Northeast (51.6), South (51.4), Midwest (48.2) • Sector index breakdown: commercial / industrial (58.4), institutional (52.8), residential (46.8), mixed (45.2) • Billings inquiries index: 64.0, up from the 56.7 score in June “The July data is quite encouraging with respect to the health and sustainability of the nonresidential construction upcycle that is so important to many of our companies,” said Banc of America Securities Electrical Equipment/Multi-industry Senior Equity Research Analyst Robert McCarthy, CFA. “In particular, we find the strong rebound in overall billing inquiries to above 60 an important positive data point as it is a vital leading indicator for continued nonresidential construction strength moving into 2007.”

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